The daily order volume saw a huge surge in Q2 2017 as it increased to 3.49 lakh from 3.04 lakh in Q1 2017, a growth of 15%, according to a RedSeer Consulting report.

Even the quarterly gross merchandising value (GMV) registered a growth of approximately 17%. This is as the GMV in Q2 2017 stood at $173 million from $148 million in Q1 2017.

The report said that with the growth being limited in the penetrated cities, many of the players in the Indian online food delivery business were pushing for growth in volumes in under-penetrated cities.

This came after home deliveries made by restaurants dropped to 30% between April to June 2017 as start-ups like Swiggy, Bikeninja and Grab capture the market.

With newer start-ups coming up with better on-time delivery rates the deliveries via restaurants dipped in the second quarter of 2017, a report by RedSeer Consulting said on July 31.

“In OND'16, the share of orders fulfilled by the restaurants was about 40% which has reduced to about 30% in AMJ'17 (April, May, June),” Foodtech expert of RedSeer Consulting, Rohan Agarwal said.

The online food delivery business in India grew by 150% year-on-year (YoY) in terms of order volumes in 2016 with an estimated gross merchandising value (GMV) of $300 million.